Can rapid growth in GMV translate into sustainable operating profit?

Revenue was ¥933.135 million and the operating loss was ¥3.863 million in FY2025, whereas revenue had grown to ¥730.648 million by FY2026 H1. However, operating performance deteriorated from a ¥0.776 million profit in the same period of the previous year to a ¥77.035 million loss, showing that the larger revenue base did not translate directly into operating profit. The operating margin in H1 was approximately negative 10.5%, suggesting a substantial burden from growth investment and business restructuring costs.

By segment, the fintech business reported revenue of ¥729.410 million and segment profit of ¥179.478 million, up 85.8% and 15.8%, respectively, year on year. Profit growth lagged revenue growth, making it important to determine whether the fintech business is simultaneously expanding GMV and improving margins. Meanwhile, the digital marketing business had contracted and deteriorated to revenue of ¥1.237 million and a segment loss of ¥35.076 million, leaving the company's earnings structure effectively concentrated in fintech.

For the nine months ended FY2026 Q3, revenue was ¥1,186.647 million and operating profit was ¥45.954 million, marking a return to profitability from the operating loss in H1. The progression from operating profit of ¥24.559 million in Q1, to an operating loss of ¥77.035 million in H1, and then to operating profit of ¥45.954 million for the nine months ended Q3 indicates substantial quarterly volatility. It is necessary to distinguish whether the nine-month profit reflects fintech transaction volume, gross profit and fixed-cost absorption, rather than a change in presentation following the withdrawal from a business or a reversal of temporary costs.

At the next results announcement, the key items to review will be not only GMV but also the fintech gross profit margin, fintech revenue and segment profit, and the amounts spent on sales promotion, development and personnel. In particular, the focus will be whether operating profit of ¥45.954 million for the nine months ended Q3 can be maintained even excluding the accounting reclassification associated with business withdrawals, and whether the company discloses numerical full-year revenue and operating profit forecasts.